description: a set of management techniques aimed at improving business processes by reducing defects
94 results
by John Lanchester · 5 Oct 2014 · 261pp · 86,905 words
chance that an event will happen on a given day, a five-sigma event is supposed to happen one day in every 13,932 years. Six sigma is even bigger; it’s one day in every 4,039,906 years, and seven sigma is one day in every 3,105,395,365
by Sarah Boslaugh · 10 Nov 2012
the 1980s; Motorola and General Electric are among the best-known early adopters. There are multiple approaches to QI, including a popular program known as Six Sigma (6σ), which is part of a general approach known as Total Quality Management (TQM). This section concentrates on the basics of QI, which are common
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acceptable ranges of values for the outputs from a process is the source of the name for the Six Sigma program because sigma (σ) is the symbol for standard deviation. The idea behind the Six Sigma program is to reduce variability sufficiently that output in the range of ±3σ will still be acceptable to
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business applications; it is the world leader in that context, according to the company website. Minitab is often the statistical package taught in conjunction with Six Sigma and similar types of quality improvement training. Specific business and quality control functions are easily produced in Minitab, including DOE (Design of Experiments) analyses, run
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maintained on the website of the Higher Education division of the publisher, McGraw-Hill. Six Sigma Glossary A glossary of terms used in the Six Sigma quality control program, maintained on the website of MiC Quality, a company that provides Six Sigma training courses and educational materials. A Glossary for Multilevel Analysis A glossary of terms
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Series–Time Series Simple Random Sampling (SRS), Probability Sampling Simpson's paradox, Exercises single blind, Blinding, Glossary of Statistical Terms single-tailed hypothesis, Hypothesis Testing Six Sigma (6σ), Quality Improvement, Run Charts and Control Charts slope, Relationships Between Continuous Variables–Relationships Between Continuous Variables, The General Linear Model, Graphing Equations–Graphing Equations
by Veljko Krunic · 29 Mar 2020
degree in engineering management focused on applied statistics, strategic planning, and the use of advanced statistical methods to improve organizational efficiency. He is also a Six Sigma Master Black Belt. Veljko has consulted with or taught courses for five of the Fortune 10 companies (as listed in September 2019), many of the
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used complex statistical analyses that required high technical proficiency with statistics and significant time to perform. Many such projects would fall under the umbrella of Six Sigma—see [21] and [22] for details. 14 CHAPTER 1 Introduction Copying parts of a system that worked for someone else doesn’t work, because that
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to not worry about interactions initially and concentrate on what happens with the ML pipeline when you change only one factor at a time. Two Six Sigma resources from ASQ [21,22] give some starting points on the process and a profile of people who have good experience in designing experiments for
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predicted value of point i, according to the ML algorithm – Yi = The actual value of point i Six Sigma—A set of methods that help an organization improve its business pro- cesses [21,22]. While Six Sigma historically has been used to help improve the 224 APPENDIX A Glossary of terms quality of many
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manufacturing processes, the methods and practices associated with Six Sigma have been used extensively in all fields of business. Practitioners of Six Sigma view all work as processes that are
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subject to never-ending improvement. Six Sigma has pioneered usage of data and statistical techniques to improve the field of business
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/w/ index.php?title=The_Blue_Marble&oldid=846541979 ASQ. Six Sigma belts, executives and champions—What does it all mean? [Cited 2018 Jul 5.] Available from: http://asq.org/learn-about-quality/six-sigma/overview/belts-executives-champions.html ASQ. Six Sigma definition—What is lean Six Sigma? [Cited 2018 Jul 5.] Available from: http://asq.org
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/learn-about-quality/six-sigma/overview/overview.html Whitehorn M. The parable of the beer and diapers. 2006 Aug
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data scientists, and engineering teams. No AI knowledge required. Veljko Krunic is a data science consultant, has a computer science PhD, and is a certified Six Sigma Master Black Belt. —Teresa Fontanella De Santis Accenture this book’s advice, “Follow and you will find your organization ‘Succeeding with ’! ” AI —James J. Byleckie
by Kathryn Schulz · 7 Jun 2010 · 486pp · 148,485 words
0.104 per million flight hours in 2007. Another well-known example of corporate efforts to prevent error is the quality-control process known as Six Sigma. Six Sigma was pioneered at Motorola in 1986 and is now used by the majority of Fortune 500 companies, plus countless smaller businesses. The protocol’s name
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this case, all deviation is assumed to be undesirable—an error in a manufacturing process or in its end product. A company that has achieved Six Sigma experiences just 3.4 such errors per million opportunities to err, a laudably low failure rate (or, framed positively, a 99.9997 percent success rate
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with a 99 percent success rate sends 3,000 packages to the wrong place. If that same company achieved Six Sigma, only a single package would go astray. There are countless variations on Six Sigma in use today (and the program itself is a variation on many earlier quality-control measures), but they all
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not fit with your other components, or they might not pass safety standards, or they might be rejected by the auto manufacturers you supply. With Six Sigma, then, the goal isn’t to improve the average per se, but to reduce the deviation from that average. To do this
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, Six Sigma analysts make use of a procedure that is usually encapsulated as “define, measure, analyze, improve, control.” In essence, that procedure involves isolating and assessing every
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and maintain the optimal outcome in terms of a company’s final product, customer satisfaction, and bottom line.* All of these error-prevention techniques—from Six Sigma to the innovations of the airline industry to the efforts at Beth Israel—have three key elements in common. The first, as I’ve indicated
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likelihood of error. That’s why officials at BIDMC set about trying to determine “all the differing ways patients get hurt.” And it’s why Six Sigma analysts systematically imagine the failure of every component of a product or process, the likely implications of that failure, and the best ways to stave
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it off (a technique borrowed from an early quality-control measure known as Failure Mode and Effects Analysis). In fact, even as Six Sigma aims for near perfection, it also strives to build into companies and processes a “tolerance for failure.” That is, it seeks to foster both awareness
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in some cases even required) to report mistakes and are protected from punishment and litigation if they do so. Likewise, GE, one of the early Six Sigma adopters, claims that to eliminate error, it has “opened our culture to ideas from everyone, everywhere, decimated the bureaucracy and made boundaryless behavior a reflexive
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, natural part of our culture.”† The final element that all error-deterrent systems have in common is a reliance on verifiable data—what Six Sigma analysts call “management by fact” rather than by “opinions and assumptions.” One of the great mysteries of what went awry in the wrong-side surgery
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business. For corporations, in other words, paying attention to error pays. Between 1986 and 2006, Motorola reported savings of more than $17 billion thanks to Six Sigma. Likewise, when the University of Michigan medical system implemented an apologize-and-explain program, their annual legal fees dropped from $3 million to $1 million
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our lives for our own fallibility. You might imagine that it would be one of the easiest ways, too—certainly easier than technical approaches like Six Sigma—but in fact, as we saw earlier, it is surprisingly hard. At least, it is hard to listen closely, sincerely, and for any length of
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passenger service between 1998 and 2007, none of the accidents in 2007 were classified as major. Six Sigma. Most of the background on Six Sigma is drawn from Peter S. Pande, Robert P. Neuman, Roland R. Cavanagh, The Six Sigma Way: How GE, Motorola, and Other Top Companies are Honing Their Performance (McGraw-Hill Professional, 2000
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book, where it appears on p. 12. My understanding of the “define, measure, analyze, improve, control” process was refined by Forrest W. Breyfogle’s Implementing Six Sigma: Smarter Solutions Using Statistical Methods (John Wiley and Sons, 2003). “tolerance for failure”…“safe failure.” Pande et al., 17–18. “the enemy” and “evil” (FN
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the Federal Aviation Administration and dedicated to “confidential, voluntary, nonpunitive” incident reporting. “opened our culture to ideas from everyone.” See GE’s report, “What is Six Sigma? The Roadmap to Customer Impact” (1999), available online at http://www.ge.com/sixsigma/SixSigma.pdf. “management by fact”…“opinions and assumptions.” Pande et al
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correct side.” Stephen Smith, “Surgeon Operates on Patient’s Wrong Side.” Motorola reported savings of more than $17 billion. “About Motorola University: The Impact of Six Sigma,” http://www.motorola.com/content.jsp?globalObjectId=3081. annual legal fees dropped from $3 million to $1 million. Hillary Rodham Clinton and Barack Obama, “Making
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,” 41 “error,” 20, 21, 41 error-blindness, 18–19, 32, 158, 262 error prevention, 10–11, 299–307, 374n medical errors, 299–302, 304–6 Six Sigma, 303–4, 305–6 error studies, 11–12 ethics, 13–14, 232 golden rule, 255n European Convention on Human Rights, 135 Evangelists (Evangelism), 107, 150
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,” 119–20n Praise of Folly (Erasmus), 38–39 presidential campaign of 2004, 174–77 preventing errors, 299–307, 374n medical errors, 299–302, 304–6 Six Sigma, 303–4, 305–6 Pride and Prejudice (Austen), 331n Prigatano, George, 354n probability, 9, 125, 141, 312 Pronin, Emily, 107, 256–58 Protagoras, 55–56
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Holmes, 262 shroud of Turin, 114n Sicarii, 161n Sidney, Philip, 322 Signs of the Times, 204 silence, 310–11 Simons, Daniel, 62 simulation theory, 381n Six Sigma, 303–6, 387n size constancy, 57, 61 skepticism, 70, 172 slow belief change, 184–86 “smoke and mirrors,” 63 Snow, Samuel, 204–6 social-conformity
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error with deviation from normal or desirable conditions—and, by extension, with evil and sin? Six Sigma presents both an unusually explicit and an unusually benign—in fact, beneficial—example of this set of associations. Among Six Sigma aficionados, deviation is not only taken to represent an error but also routinely referred to as
by Larry Bossidy · 10 Nov 2009 · 244pp · 76,192 words
one sure way to create meaningful cultural change. One way to get a handle on execution is to think of it as akin to the Six Sigma processes for continual improvement. People practicing this methodology look for deviations from desired tolerances. When they find them, they move quickly to correct the problem
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to the selection of people for promotion. Then they move to close the gap and raise the bar still higher across the whole organization. Like Six Sigma, the discipline of execution doesn’t work unless people are schooled in it and practice it constantly; it doesn’t work if only a few
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, Illinois, that makes sensors. It was an old Honeywell business, not on the cutting edge of contemporary practices, except that it had a very productive Six Sigma effort and a very productive digitization effort. Nobody had asked the leadership to institute these things. They just decided they were the right things to
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’d figure out how. Here’s the good news, though. I was trying to revive the company’s Six Sigma program, which had been let go in my absence. But this manager’s Six Sigma program was right on top of things. It needed a little work, but he had plenty of black belts
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organization. At Honeywell our learning strategy is based on the kind of organizational capabilities people need. Some of these include tools people have to master—Six Sigma, digitization, managing the flow of materials through a work cell by self-directed teams. Some are broader, having to do with executive development. Here the
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be other goals, focused on what we’re doing both this year and in the long term. These goals could be anything from creating the Six Sigma infrastructure to breaking into a specific marketplace. We formally evaluate performance and potential twice a year in our management resource reviews. And then we link
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, the system rewards you according to a formula, and congratulations, here’s the check. But if you want to reward other behaviors—your record with Six Sigma or in improving the diversity of your leadership team or your collaboration with peers—software enters the picture, because it defines the norms of behavior
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that financial and managerial resources would earn greater returns elsewhere. Strategic value is also added by initiatives to improve performance throughout the company, such as Six Sigma, digitization, and implementation of a good people process. GE’s celebrated people process started as a Jack Welch initiative for human resources to produce a
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your answer is an eight or a seven, what do you need to do to get it to ten? Do you have people who understand Six Sigma, for example, and have achieved at least Five Sigma? Engineering organizations are often not on the cutting edge of their field’s discipline. Can you
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our manufacturing capability before we offer new products. Although we have made improvements, our spare parts delivery rates are still unacceptable. We need to make Six Sigma translate into higher productivity. In the end, we are competing on cost, quality, and technology. We have to be in a position to win on
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reducing lead times. A significant reduction is needed in Q4 to achieve the cash flow target. I would like you to put more focus on Six Sigma projects. Let’s be sure we are realizing the value of the black-belt/green-belt resources. We have had success driving productivity at product
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have had otherwise. In another segment we took a risk and were able to increase prices by half a point. And we trained five more Six Sigma black belts, enabling us to have more cost-reduction projects. All these came out of dialogues; I didn’t suggest them. Sometimes, on the other
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products to others. Understanding customers is the base of business success. Second, always look for ways to improve your results by introducing initiatives such as Six Sigma or digitization. They not only can be productive, they can also bind your people together in a common cause. Third, maintain and sharpen your intellectual
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credited with transforming AlliedSignal into one of the world’s most admired companies, whose success was largely driven by an intense focus on growth and Six Sigma–driven productivity. During his tenure with Allied-Signal the company achieved consistent growth in earnings and cash flow, highlighted by 31 consecutive quarters of earnings
by David Gelles · 30 May 2022 · 318pp · 91,957 words
a profit. But McNerney found other ways to ingratiate himself with Welch. In the mid-1990s, McNerney became one of the most zealous champions of Six Sigma, a new quality improvement methodology that Welch was pushing on the company. Inspired by the Japanese notion of kaizen, or continuous improvement
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, Six Sigma used a complex system of feedback and buzzwords to try and root out any lingering vestiges of inefficiency. Whether it actually helped or just created
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a lot of paperwork was a subject of fierce debate. But during Welch’s heyday, championing Six Sigma was a must for executives hoping to stay in the boss’s good graces, and McNerney embraced the cause with gusto. “It’s our new
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that we’re talking about in the United States that we’re talking about in Brazil. We’re using the same terminology.” Whether it was Six Sigma, favorable market conditions, or McNerney’s own campaign of layoffs and outsourcing, whatever he did worked during his years overseeing the lighting business, and he
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jobs. Before long, that figure grew to 8,000, then 11,000. From there, he continued to bring the Welch playbook to 3M. He implemented Six Sigma and tried to formalize what was at times a freewheeling, creative culture. McNerney said he wasn’t trying to stifle innovation. “The DNA of this
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products by trying things, and sometimes failing. Trial and error was how they discovered what worked and what didn’t. But with the arrival of Six Sigma, mistakes were no longer tolerated, let alone celebrated as opportunities to learn and grow. Workers who didn’t follow the new regime were removed. And
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review system, were disproportionately demoted, and that cumulatively this had serious negative effects on their pay, promotions, and exit packages. The suit also contended that Six Sigma was a vehicle for discrimination, as older employees were routinely passed over for younger ones when it came time to select people for the program
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is ultimately a losing strategy. “Invention is by its very nature a disorderly process,” said the new CEO, George Buckley. “You can’t put a Six Sigma process into that area and say, well, I’m getting behind on invention, so I’m going to schedule myself for three good ideas on
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was the kind of laborious, innovative work for which McNerney had exhibited little patience at 3M, where he was accused of stifling innovation by imposing Six Sigma and cutting costs. And soon after taking over Boeing in 2005, he began making similar moves. From his time with Welch, McNerney understood how compensation
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, Jim, 99, 101–2, 107 as Boeing CEO, 113, 127–30, 153–54, 194, 200 at the Jack Welch Management Institute (online MBA program), 134 Six Sigma and, 101, 112–13, 127 as 3M CEO, 111–13, 127 Means, Gardiner C., 24–25, 212 Meckling, William, 37–38, 110 Medtronic, 77–78
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Welchism and, 8–9, see also Welchism Sharer, Kevin, 106 Sheffer, Gary, 39–40 Siegel, Marty, 54–55 60 Minutes (CBS TV program), 42, 131 Six Sigma, 101, 112–13, 127 Skilling, Jeffrey, 124 Sloan, Alfred, 25 Smith, Greg, 190 Smith, Kyle, 89 Sonnenfeld, Jeffrey, 164 Sorscher, Stan, 89 Southwest Airlines, 190
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, 176 as role model, 72–73, 78–80, 81, 88, 111, 123–26, 175, 177–82, 191–94, 229–31 search for successor, 99–104 Six Sigma and, 101 stakeholder capitalism commentary, 151–52 as “Toughest Boss in America” (Fortune), 49 Donald Trump and, 12, 59, 90–91, 121, 134–35, 158
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beyond, 12–13, 203–31, see also stakeholder capitalism nature of, 8–9 negative externalities in, 168–85 NYC Leadership Academy and, 132–33, 134 Six Sigma in, 101, 112–13, 127 at Stanley Works, 83–84, 110 at 3G Capital, 177–82, 206–7 Trump and, 198–201 see also shareholder
by John Allen Paulos · 1 Jan 2003 · 295pp · 66,824 words
Leverage Short-Selling, Margin Buying, and Familial Finances Are Insider Trading and Stock Manipulation So Bad? Expected Value, Not Value Expected What’s Normal? Not Six Sigma Chapter 7 - Diversifying Stock Portfolios A Reminiscence and a Parable Are Stocks Less Risky Than Bonds? The St. Petersburg Paradox and Utility Portfolios: Benefiting from
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is much greater than it is with the lot. This brings us to the notion of standard deviation and stock risk. What’s Normal? Not Six Sigma Risk in general is frightening, and the fear it engenders explains part of the appeal of quantifying it. Naming bogeymen tends to tame them, and
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the expected value, the more unusual the result. This fact helps account for the many popular books on management and quality control having the words “six sigma” in their titles. The covers of many of these books suggest that by following their precepts, you can attain results that are six standard deviations
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above the norm, leading, for example, to a minuscule number of product defects. A six-sigma performance is, in fact, so unlikely that the tables in most statistics texts don’t even include values for it. If you look into the
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Sharpe, William Sherra, Jesse Shiller, Robert short selling short-term investors shorting and distorting strategy Shubik, Martin Sidgmore, John Siegel, Jeremy “single index model” (Sharpe) six sigma performance Slovic, Paul Sluggish Market Hypothesis Smith, Adam socially regressive funds Spitzer, Eliot Sport Illustrated spread, making money on St. Petersburg paradox standard deviation (d
by Eric Ries · 15 Mar 2017 · 406pp · 105,602 words
tell the difference? HOW DO WE DEAL WITH FAILURE? No doubt you’ve heard of Six Sigma, one of the most famous corporate transformations in management history. Introduced to GE in 1995 by CEO Jack Welch, Six Sigma is a process to develop and deliver near-perfect products. Sigma is a statistical term measuring
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how far a given process deviates from perfection. To achieve Six Sigma Quality, a process must produce no more than 3.4 defects per million opportunities, i.e., it must be defective less than 0.0000034 percent
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of the time. Welch introduced the process to GE with the goal of achieving Six Sigma Quality across the company within five years, stating, “Quality can truly change GE from one of the great companies to absolutely the greatest company in
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training executives, a lot of questions arose, from both fans and skeptics of Six Sigma, as to whether FastWorks was to be GE’s next “big thing.” Did it render past Six Sigma training obsolete? If FastWorks was meant to work alongside Six Sigma, how would you know when to use which? Were there certifications and
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levels to Lean Startup knowledge akin to the colored belts of Six Sigma? One day, as I was meeting with a Six Sigma black belt from one of GE’s industrial businesses—who was quite skeptical— I found myself distracted by the mug on
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new statistical science of variation, and then devising tools, methodologies, and training programs that could make doing so practical. Standardization, mass production, lean manufacturing, and Six Sigma are all fruits of this hard-won conceptual victory. Baked into these methods is a presupposition that failure can be prevented through diligent preparation, planning
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in the company. As I mentioned in Chapter 1, this new way stands on the shoulders of revolutions past: scientific management, mass production, lean manufacturing, Six Sigma, agile software development, customer development, maneuver warfare, design thinking, and more. Even within a single organization, entrepreneurial principles and general management principles share common foundations
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allowed. They built new plans, came up with MVPs, and asked difficult questions. “How do you account for this?” “How do you integrate this with Six Sigma?” “How does this relate to commercial operations?” “What if it’s federally regulated?” At the heart of each question was the same concern: “How do
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, NJ: Wiley, 2010. Pound, Edward S., Jeffrey H. Bell, and Mark L. Spearman. Factory Physics for Managers: How Leaders Improve Performance in a Post–Lean Six Sigma World. New York: McGraw-Hill Education, 2014. Reinertsen, Donald G. The Principles of Product Development Flow: Second Generation Lean Product Development. Redondo Beach, CA: Celeritas
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between the start and end points of a routing.” To learn more, see Factory Physics for Managers: How Leaders Improve Performance in a Post–Lean Six Sigma World, by Edward S. Pound, Jeffrey H. Bell, and Mark L. Spearman (New York: McGraw Hill Education, 2014). 3. startup-marketing.com/the-startup-pyramid
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.1, nts.1n1 PD@GE, 8.1, p03.1, 10.1 Series X, itr.1, itr.2, itr.3, 2.1, 6.1, 6.2 Six Sigma, 1.1, 7.1 Sustainable Healthcare Solutions transformation, 6.1, 6.2, 6.3 Ventures Gebbia, Joe, 8.1, 8.2, 8.3 Gebhardt, Eric
by Simon Baron-Cohen · 14 Aug 2020
that the new system they have created or assembled delivers a near-identical result every time. They call this “Six sigma,” written like this, using the Greek character sigma:21 It’s called Six sigma because it is six standard deviations from the mean—an extreme outlier. Engineers, who are hyper-systemizers, want 99
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I sit on the chairlift at a ski resort, these machines will work flawlessly at least 999,996.6 times out of a million. The Six sigma rule is not just reassuring to us as passengers and consumers, but it can also lead to massive profits. General Electric, for example, announced that
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when they first used Six sigma, their profits grew by more than $1 billion. Good engineering and invention hinge not just on going through the if-and-then steps but also
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. 21. The sigma character is taken from Wikipedia, “The common Six Sigma symbol,” en.wikipedia.org/wiki/Six_Sigma#/media/File:Six_sigma-2.svg; see also D. Dusharme, “Six sigma survey: Breaking through the six sigma hype,” Quality Digest, www.qualitydigest.com/nov01/html/sixsigmaarticle.html. The concept of Six sigma is not without its critics but is nevertheless now a
by Chip Heath and Dan Heath · 2 Oct 2017 · 274pp · 72,657 words
service better and more efficient. In doing his work, Phelps relied heavily on the discipline of Six Sigma. If you manufacture products—let’s say rubber balls—naturally you want them to be free of defects. A “six sigma” process is one that produces only 3.4 defects per million attempts. So if you
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monitor the manufacturing process, gathering data to pinpoint problems and to reduce variability. The people who perform these feats of process improvement are practitioners of Six Sigma, and their voodoo can also be practiced on nonmanufacturing situations as well, such as reducing surgical errors or, in the case of Phelps, speeding up
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engine repair. The most talented practitioners seek out certification as a Six Sigma Black Belt, an honorific that has nothing to do with karate but rather reflects a noble and ultimately hopeless attempt to give the work some
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sex appeal. Back to the story: Phelps needed a Six Sigma Black Belt to assist him with his work in Albany, New York, and he hired Ranjani Sreenivasan for the role. Raised in India, Sreenivasan had
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in the United States for only three years, having come to complete her master’s degree in mechanical engineering. Sreenivasan’s role was to use Six Sigma to help colleagues improve their processes, for instance by reorganizing the service shops so that more frequently used tools were closer at hand. But she
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—her friends had nicknamed her “Thunder,” because they always knew when she was in the room. Rather, she was overwhelmed. She knew a lot about Six Sigma but almost nothing about servicing diesel engines. In meetings she felt as if her colleagues were “speaking in Greek and Latin.” She’d take notes
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of all the terms they used and ask someone later what they meant. At her first team meeting for a Six Sigma project, she sat silently, and afterward approached Phelps, distraught. “I was so upset,” she said. “I was seen as this new hire who knew nothing
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I was doing so much at such a young age.” Phelps lined up additional field visits, and Sreenivasan became more and more comfortable sharing her Six Sigma insights. Phelps started to hear back from his colleagues how impressed they were. Some of the people who had grumbled about her performance were now
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through that night when I didn’t know that myself.” 6. The formula for mentorship that leads to self-insight: High standards + assurance + direction + support. • Six Sigma expert Ranjani Sreenivasan was pushed by her mentor to develop skills in company operations. “I learned that I’m capable of more than I thought
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al. (2014). “Breaking the Cycle of Mistrust: Wise Interventions to Provide Critical Feedback Across the Racial Divide,” Journal of Experimental Psychology 143(2): 804–24. Six Sigma black belt. This story was originally surfaced in a survey response submitted by Dale Phelps in March 2016 and subsequent interviews by Dan with Phelps
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, 1–2, 6 for YES Prep School, 2–4, 6, 11, 15, 43, 62, 63, 255, 263 “silo” mentality, 249–52 Simpsons (TV show), 147n Six Sigma, 124–27, 132 Slocum, Ed, 143n Sloop, Kira, 141–43, 143n, 144, 145, 151, 194 Sloop, Ross, 143n snow story, 264–65 solutions: and “trip
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